domain-based network

A network that uses names that conform to the domain name system (DNS) for identifying resources. Large enterprises as well as many smaller business use domain-based networks, which conform to the TCP/IP protocol suite. The directory structure in Microsoft's Active Directory is based on the domain system.

Domain Based Vs. Workgroups
Windows networks can be domain based or workgroup based, the latter stemming from the first DOS/Windows networks. Workgroup-based networks identify computers and printers by unique names within subgroups. The subgroup typically defaults to WORKGROUP, and many small business and home networks keep the name, identifying all PCs and printers as resources within WORKGROUP.

The advantage of using the domain system is that it conforms to TCP/IP, which is the de facto communications protocol standard for all networks, whether public or private. The domain-based system offers significantly more administration flexibility than workgroup-based networks. See Active Directory and DNS.